Police Pension Fund Board

WHEATON POLICE PENSION FUND 900 West Liberty Drive, Wheaton, Illinois | 630-260-2161 Brett Mathieson Princeton Youker Hugh DeWitt James Craig Matthew Litfin President Secretary Vice President Vice Secretary Trustee MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES WHEATON POLICE PENSION FUND August 20, 2015 A regular meeting of the Board of Trustees of the Wheaton Police Pension Fund was held on Thursday, August 20, 2015 at 5:00 p.m., located at 900 W. Liberty Drive, Wheaton, Illinois, pursuant to notice, to conduct regular business. CALL TO ORDER: The meeting was called to order by President Brett Mathieson at 5:02 p.m. ROLL CALL: PRESENT: President Brett Mathieson; Secretary Princeton Youker, Assistant Secretary James Craig, and Vice President Hugh (Bill) DeWitt, Trustee Mathew Litfin (arrived at 5:30 pm) ABSENT: None ALSO PRESENT: Mary Tomanek, Investment Management Consultant, Graystone Consulting; Cheryl Kessler, Lauterbach & Amen, LLP PUBLIC COMMENTS: There were no public comments. APPROVAL OF MINUTES: The Board reviewed the May 14, 2015 meeting minutes presented in the Board packet. A motion was made by Trustee Mathieson and seconded by Trustee Youker to approve the May 14, 2015 regular meeting minutes as written. Motion carried by unanimous voice vote. Semi-Annual Review of Closed Meeting Minutes: A motion was made by Trustee Mathieson and seconded by Trustee Youker to keep the one closed session closed until further review. Motion carried by unanimous voice vote. TREASURER’S REPORT: Monthly Financial Report – Lauterbach & Amen, LLP: The monthly Financial Report for the period ending 6/30/15 was presented for the Board’s review. The net position held in trust for pension benefits is $48,460,911.27 for a change in position of $243,848.64 for the two month period ending June 30, 2015. The Board reviewed the vendor checks report provided in the Board packet. A motion was made by Trustee Mathieson and seconded by Trustee DeWitt to accept the monthly Financial Report as presented and to approve the disbursements that were paid in April, May and June 2015, totaling $74,699.69. AYES: Trustees Mathieson, Youker, Craig and DeWitt NAYS: None ABSENT: Litfin COMMUNICATIONS OR REPORTS: Active Member Files Update: Lauterbach & Amen will pick up the active member files to scan and digitally store them. Letters will be sent to all active members detailing the contents of their files and requesting missing documentation. Trustee Matthew Litfin joined the meeting at 5:30 pm Annual Affidavits of Continued Eligibility: Lauterbach & Amen will prepare and send the Annual Affidavits in September. Status of Preparation of Department of Insurance Annual Statement: The Trustees were advised that Lauterbach & Amen is in the process of preparing the Annual Statement which must be submitted by October 30, 2015. WHEATON POLICE PENSION FUND August 20, 2015 Page 2 INVESTMENT REPORT - Mary Tomanek, Graystone Consulting: Quarterly Investment Report: The Board reviewed the Quarterly Performance Review (QPR) for the second quarter ending June 30, 2015 prepared by Graystone Consulting. The combined portfolio ending market value as of 6/30/15 was $47,179,924.00. The return on investment for the quarter was -0.43% (-$95,884) and the year to date investment return is 2.12%. The total fund asset allocation as of 6/30/15 is fixed income 47% and equity 53%. The Board discussed a projection of annual payouts for liabilities. The Board was advised that Actuary, Timothy Sharpe, offers the preparation of a 30-year projection of the annual payouts of liabilities and charges $500.00 for the report. A motion was made by Trustee Mathieson and seconded by Trustee Litfin to authorize Trustee Youker to retain Actuary Timothy Sharpe to prepare a 30 year projection of the annual payouts of liabilities and to approve the cost of the report if the City of Wheaton does not have such a report. AYES: Trustees Mathieson, Youker, Craig, DeWitt, and Litfin NAYS: None ABSENT: None The Board discussed rebalancing the current asset allocation. A motion was made by Trustee Litfin and seconded by Trustee Mathieson to withdraw $4,000,000 from Ryan Labs and invest $1,000,000 in each of the following four equity managers: FAM Small Value Golden - Large Core RBC - Small Growth Ziegler/Red Granite – Lg Growth AYES: Trustees Mathieson, Youker, Craig, DeWitt, and Litfin NAYS: None ABSENT: None The Board directed Ms. Tomanek to provide updated index numbers to Timothy Sharpe for the actuarial report he is preparing. A motion was made by Trustee Mathieson and seconded by Trustee Youker to accept the investment report as presented by Graystone Consulting. Motion carried by unanimous voice vote. Mary Tomanek left the meeting at 6:20 pm APPLICATIONS FOR ADMISSIONS/WITHDRAWALS FROM FUND: Applications for Membership- Crystal N. Parchem & Michael H. Sheahan: The Board was informed there were two new officers hired on July 1, 2015 with Tier II status. A motion was made by Trustee Youker and seconded by Trustee DeWitt to accept the applications and approve membership to the Wheaton Police Pension Fund for the following new members: Crystal N. Parchem – date of hire 7/1/15 with Tier II status Michael Harry Shehan – date of hire 7/1/15 with Tier II status AYES: Trustees Mathieson, Youker, Craig, DeWitt, and Litfin NAYS: None ABSENT: None Request for Contribution Refund: Erin Evelyn Sheridan: A request for a refund of pension contributions was received from Erin Evelyn Sheridan and all necessary paperwork was submitted to the pension fund. Officer Sheridan was hired 6/30/14 and resigned 11/17/14. Ms. Sheridan has requested that her contributions be rolled over to Vanguard Fiduciary Trust Company. A motion was made by Trustee Youker and seconded by Trustee DeWitt to approve a contribution WHEATON POLICE PENSION FUND August 20, 2015 Page 3 refund to Erin Evelyn Sheridan, payable to Vanguard Fiduciary Trust Company, Custodian of Erin E. Sheridan, in the amount of $2,337.23, noting her last day worked was 11/17/14. AYES: Trustees Mathieson, Youker, Craig, DeWitt, and Litfin NAYS: None ABSENT: None APPLICATIONS FOR RETIREMENT OR DISABILITY BENEFITS: Approval of Retirement Benefits: John P. Weibler: The Board reviewed the retirement benefit calculation prepared by Lauterbach & Amen. A motion was made by Trustee DeWitt and seconded by Trustee Youker to approve the benefit calculation for John P. Weibler, Jr., as follows: his date of entry was 02/01/88, the effective date of his pension is 06/01/2015; he has 27 years of creditable service earned; at 67.5% of his applicable salary of $95,118.70, the amount of his originally granted monthly pension is $5,350.43. AYES: Trustees Mathieson, Youker, Craig, DeWitt, and Litfin NAYS: None ABSENT: None Approval of Application for Survivor Benefits: Ralph J. Fortman: The Board discussed Mr. Fortman’s widow, Pearl Fortman’s, application for survivor benefits and her eligibility. All information has been submitted to the IDOI for an opinion regarding Mrs. Fortman’s eligibility. This matter is tabled until the next meeting. OLD BUSINESS: Application for Disability Benefits: T. Sommerfield: Attorney Reimer’s office has requested a block of dates for coordination with other attorneys involved in the disability process. The Board directed Trustee Youker to discuss the coordination of dates with Attorney Reimer. NEW BUSINESS: Trustee Training Update: Lauterbach & Amen provided the Board with a summary of current Trustee Training. All Trustees were reminded to send copies of completed training certificates to Lauterbach & Amen for recordkeeping. Preliminary Actuarial Report: The City of Wheaton provided the preliminary actuarial valuation report prepared by Timothy W. Sharpe. Based on Mr. Sharpe’s preliminary report, the tax levy requirement increased 18.9%. The preliminary amount of the tax levy requirement for the Wheaton Firefighters’ Pension Fund is $2,378,653. When the final report is available, a copy will be furnished to the Board. Trustee Youker will draft the tax levy request for review by the Board. Department of Insurance Compliance Audit: The Board reviewed the IDOI’s notification for a compliance audit dated August 3, 2015. The Trustees have been working with Lauterbach & Amen and Mary Tomanek to compile and upload to the IDOI the requested documentation. Review and Approval of updated Lauterbach & Amen Engagement Letter: The Board Trustees reviewed the 7/7/15 revised engagement letter from Lauterbach & Amen, for years ending April 30, 2014 through 2017. A motion was made by Trustee Youker and seconded by Trustee Litfin to approve the engagement letter with Lauterbach & Amen through 4- 30-17, as presented, with the addition of language to include PSA assistance with filing and destruction of documents. AYES: Trustees Mathieson, Youker, Craig, DeWitt, and Litfin NAYS: None ABSENT: None WHEATON POLICE PENSION FUND August 20, 2015 Page 4 Authorize Payment of Registration Fees & Reimbursable Expenses for Trustees to Attend the IPPFA Fall Conference: The Board discussed the IPPFA Fall Conference registration fees. A motion was made by Trustee Mathieson and seconded by Trustee Litfin to authorize payment of the IPPFA Fall Conference Registration Fees not to exceed $975. AYES: Trustees Mathieson, Youker, Craig, DeWitt, and Litfin NAYS: None ABSENT: None ATTORNEY’S REPORT: There was no attorney report. The Reimer Dobrovolny & Karlson, LLC quarterly newsletter was included in the Board packet for review. The next regularly scheduled Board meeting will be November 12, 2015 at 5:00 p.m. ADJOURNMENT: A motion was made by Trustee Mathieson and seconded by Trustee DeWitt to adjourn the meeting at 7:11 p.m. Motion carried unanimously by voice vote. Respectfully submitted, ____________________________________ Date the minutes were approved: ________________ Brett Mathieson, Pension Board President ____________________________________ Princeton Youker, Pension Board Secretary Minutes prepared by Cheryl Kessler, Pension Services Administrator